Consultation on major changes to Isle of Man public sector pensions

Consultation has begun on major reforms to the main pension scheme for public sector workers on the Isle of Man.

In June, Tynwald, the island’s Parliament, passed a resolution endorsing principles for reform of the Government Unified Scheme (GUS).

The Public Sector Pension Authority, the independent body that manages and administers the scheme, has written to scheme members to outline the changes it is proposing in order to comply with Tynwald’s resolution.

The main reforms proposed are:

(1) a 2.5% increase in member contributions for active members, to be phased in from April 2018

(2) a 6% reduction in the value of pension accrued after April 2017 (implemented through a lower accrual rate).

The consultation closes on 6 January 2017 with Tynwald expected to legislate for changes in February 2017.

Prospect is one of the largest trade unions on the Isle of Man and represents more than 2,000 members of GUS.

Prospect negotiator Angela Moffatt said: “These proposals are the result of a long and difficult process that began more than two years ago.

“Prospect representatives and officials contributed significantly to these discussions but, despite some significant and welcome progress, we could not endorse all of the final principles for reform that Tynwald approved in June.

“However this is a hugely significant issue for members and we have remained involved in order to achieve the best possible outcome.

“Prospect members will be given the final say on the overall reforms in a ballot early next year,” Moffatt concluded.